IMF team commends economic recovery in meeting with ex-President Ranil
Behind the News
The delegation of the International Monetary Fund (IMF) led by Senior Mission Chief Peter Breuer, who are currently on a visit to Sri Lanka, have reportedly met with former President Ranil Wickremesinghe today (18) at his office in Flower Road, Colombo.
In a post on ‘X’ (formerly Twitter), former State Minister of Finance Shehan Semasinghe, who also participated in the meeting, stated that they commended the remarkable efforts of the former government in recovering Sri Lanka’s economy from its worst crisis and setting it on a path toward sustainable growth.
“During the discussions, we emphasized the importance of maintaining continuity in policies and programs, safeguarding the hard-earned reforms, and ensuring that these achievements are not reversed to secure stability and long-term economic development,” he added.
In order to secure the fourth tranche of the IMF’s Extended Fund Facility (EFF) for Sri Lanka, the country must continue implementing several key reforms and policy measures.
These typically focus on fiscal discipline, structural reforms, monetary stability, and institutional changes. Here’s a breakdown of common measures that are likely relevant for Sri Lanka in securing the fourth tranche:
The new government ha sto subnit its programme to get the support of the IMF is to be ficussed mainly on ,Fiscal Consolidation, Tax Reforms ,Subsidy Reductions Debt Restructuring and Transparency ,
Reducing the Budget Deficit: Sri Lanka needs to maintain a focus on reducing the fiscal deficit by increasing revenue collection and controlling government spending.
Tax Reforms: It has to be continued tax reforms to broaden the tax base, improve tax compliance, and increase revenue.
Subsidy Reductions: Reducing energy and other subsidies is amust to cut down on state expenditure.
. Debt Restructuring and Transparency
Debt Management: Effective management of public debt is crucial, ensuring Sri Lanka’s debt is on a sustainable path. This includes continued negotiations with creditors and adhering to debt restructuring plans.
Transparency: Improving transparency is one of the important factors that should b ensured by the present governmt during their discussions with IMF.
